A composite Ni-Y doped ZrO2 (YSZ) composite was prepared by depositing a 1-50 µm thick coating of YSZ particles from a colloidal suspension (initial YSZ particle size ~100 nm) onto a sapphire substrate followed by impregnation by Ni polymer precursors into the coating and annealing at 800°C. The electrical conductivity at 700°C of the composite Ni-YSZ was 0.1 S cm-1 in air and above 100 S cm-1 in reducing atmosphere. Redox cycle and life time testing showed stable performance and the conductivity at 800°C was as high as 300 S cm-1 after 800 h operation in reducing atmosphere. These results suggest that the Ni-YSZ composite can be a potential candidate for use as an anode in solid oxide fuel cells.